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Consider the following statements regarding Special economic zones (SEZs) in India.
1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.
2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.
3. SEZs are exempted from Minimum Alternate Tax (MAT).
Which of the above statements is/are correct?
- a)1 and 3 only
- b)2 and 3 only
- c)1 and 2 only
- d)All of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Special economic zones (S...
A special economic zone (SEZ) is an area where the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration.
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The SEZ Scheme's main objectives are generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities, and the development of infrastructure facilities. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Sales in the Domestic Tariff Area from the SEZ units are treated as imported and subject to payment of applicable customs duties.
SEZs were introduced to India in 2000, following the already successful SEZ model used in China. Before their introduction, India relied on export processing zones (EPZs), which failed to impact foreign investors. By 2005, all EPZs had been converted to SEZs.
The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creation of related infrastructure.
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Consider the following statements regarding Special economic zones (S...
SEZs in India
Overview:
Special Economic Zones (SEZs) are geographically defined areas set up for the purpose of promoting exports, investment and economic growth. The concept of SEZs was introduced in India in 2000 with the aim of boosting exports and attracting foreign investment.
Key facts:
• SEZs are governed by the SEZ Act, 2005 and the SEZ Rules, 2006.
• SEZs are treated as foreign territory for the purposes of trade operations.
• SEZs are exempted from various taxes and duties such as income tax, customs duty, excise duty, and service tax.
Statements:
1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.
• This statement is correct.
• State Governments are responsible for providing necessary infrastructure such as water supply, electricity, roads, and other amenities in SEZs.
2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.
• This statement is correct.
• SEZs are subject to all central and state laws unless they are specifically exempted under the SEZ Act and Rules.
3. SEZs are exempted from Minimum Alternate Tax (MAT).
• This statement is correct.
• SEZ units are exempt from MAT for a period of 15 years from the date of commencement of production.
Conclusion:
All the statements are correct. The SEZ policy has been successful in promoting exports and attracting foreign investment in India. However, there have been some concerns regarding the impact of SEZs on land acquisition and displacement of local communities. The government needs to ensure that the benefits of SEZs are balanced with the social and environmental costs.
Overview:
Special Economic Zones (SEZs) are geographically defined areas set up for the purpose of promoting exports, investment and economic growth. The concept of SEZs was introduced in India in 2000 with the aim of boosting exports and attracting foreign investment.
Key facts:
• SEZs are governed by the SEZ Act, 2005 and the SEZ Rules, 2006.
• SEZs are treated as foreign territory for the purposes of trade operations.
• SEZs are exempted from various taxes and duties such as income tax, customs duty, excise duty, and service tax.
Statements:
1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.
• This statement is correct.
• State Governments are responsible for providing necessary infrastructure such as water supply, electricity, roads, and other amenities in SEZs.
2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.
• This statement is correct.
• SEZs are subject to all central and state laws unless they are specifically exempted under the SEZ Act and Rules.
3. SEZs are exempted from Minimum Alternate Tax (MAT).
• This statement is correct.
• SEZ units are exempt from MAT for a period of 15 years from the date of commencement of production.
Conclusion:
All the statements are correct. The SEZ policy has been successful in promoting exports and attracting foreign investment in India. However, there have been some concerns regarding the impact of SEZs on land acquisition and displacement of local communities. The government needs to ensure that the benefits of SEZs are balanced with the social and environmental costs.
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Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding Special economic zones (SEZs) in India.1. The SEZ Act 2005 envisages a key role for the State Governments in Export Promotion and creating a related infrastructure in SEZs.2. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules.3. SEZs are exempted from Minimum Alternate Tax (MAT).Which of the above statements is/are correct?a) 1 and 3 onlyb) 2 and 3 onlyc) 1 and 2 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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